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Xbox-owned ZeniMax Online Studios cuts 3,200 jobs in reset plan
ZeniMax Online Studios said half of the planned layoffs hit immediately, with the remaining 1,600 scheduled within 12 months as Xbox shifts more resources to major blockbuster franchises.
BBC Business reports that Xbox-owned ZeniMax Online Studios (ZOS) is letting go 3,200 workers, about 20% of its staff, following leadership plans to “reset the business.” The cuts include the immediate elimination of half the roles, with the remaining 1,600 set to go over the next 12 months.
According to the outlet, the layoffs were preceded by internal uncertainty after ZOS and Xbox leadership moved to pivot toward faster releases of the company’s biggest series. Xbox leadership described the job cuts as “painful,” but necessary to reposition the studio network for future success.
BBC Business also notes that workers and former employees question whether the changes will help achieve Xbox’s goals, saying the layoffs have removed long-time experience. The article ties the broader trend to a post-2022 wave of cuts across the video game industry, linked to earlier hiring and expansion during the Covid-19 boom.
The BBC Business report adds that large acquisitions by Microsoft, including the $69 billion purchase of Activision Blizzard in 2023, have shaped Xbox’s portfolio and execution expectations. It also points to industry pressures such as rising hardware costs and shifting player spending, with some staff describing a period of limited communication after the initial memo in early June.